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Usage of electronic bills of lading (eBLs) in containerised trade has more than doubled since the start of last year, though several barriers to further digitisation remain, an influential industry group has said. 

In the first half of this year, nearly 5% of bills of lading were digital, up from 3-4% last year and just 1.2% in 2021, according to a report published today by the Digital Container Shipping Association (DCSA), whose members account for nearly three-quarters of all global containerised trade. 

Moving from paper bills of lading to electronic equivalents would cut direct trade costs by an estimated US$6.5bn while reducing the industry’s carbon footprint, industry groups estimate. 

At the same time, standards developed by DCSA – which cover eBLs, port calls, container location tracking and several other features of digital trade – have also seen an uptick in usage, with carriers adopting twice as many in the first quarter of this year than in the previous five years combined. 

DCSA chief executive Thomas Bagge says the findings “mark a pivotal moment for the industry”. 

The report includes the results of a survey of 400 senior representatives from multinationals involved in containerised trade. 

It finds more than four-fifths of cargo owners believe digitalisation reduces operational costs, improves customer experience and provides a competitive advantage if adopted early. 

Greater supply chain visibility also helps shippers grapple with unexpected disruptions to transport and logistics. 

The ongoing Red Sea crisis, where attacks on commercial vessels by the Houthi rebel group have meant shipments are re-routed around Africa’s Cape of Good Hope, impacted more than half of UK exporters and manufacturers surveyed by the DCSA. 

As a result,  ships have arrived at ports on unexpected days, while some companies “reported an increase in container hire fees as high as 300%, as well as logistical delays that added up to four weeks to delivery times”. 

Climate-related issues, such as low water levels in the Panama Canal and Rhine River, have also added to disruption. 

Digitisation means companies can “understand associated risks, have robust exception planning strategies in place, and are equipped to pivot swiftly when needed to minimise business and customer impact”, the report says. 

 

Barriers to adoption 

Progress in some areas has been rapid. Callouts using the DCSA’s track and trace standard, which uses APIs to give real-time visibility into container location and operational events, grew by 40% between September 2023 and March 2024. 

However, the report outlines several obstacles to moving away from paper documents and manual processes. 

“The survey found that outdated infrastructure, a lack of proactive investments, and resistance are important challenges to digitalisation,” the report says. “Other barriers include a lack of expertise, cost, technical integration issues, and data security concerns.” 

The DCSA reports that banks involved in financing containerised trade see digitisation as a crucial tool in fraud prevention and risk reduction, but need to resolve security concerns and a lack of leadership support for digital strategies. 

Lenders also face “internal resistance” around transitioning from old processes, the report says. 

Similarly, cargo insurers encounter issues from leadership and employees over job security and operational changes. Although insurers recognise that digitisation could help improve risk modelling and assessment, there is also a lack of cooperation on data sharing. 

Among cargo owners, there are significant differences between markets. Between 70% and 80% of cargo owners in France and Germany say their organisation is fully or very ready for digitalisation, whereas the figure in the UK and US is just over half. 

For eBLs, the DCSA has previously warned that regulatory barriers are slowing adoption in major markets, including major challenges in Canada, the Netherlands and the US, despite a series of legal reforms facilitating their use. 

The association adds that the majority of cargo owners report a need for external expertise or resources to help with their digital transition. 

The report suggests greater collaboration between all parties involved would aid those efforts, and notes that “significant progress has already been made in this respect”. 

One major collaborative effort was a call to action issued in September last year by the DCSA and a group of international trade finance lenders and industry groups, which urged companies to sign up to digital standards and start using existing eBL solutions. 

In bulk trading, progress has been more rapid. Shipping industry association Bimco revealed in July that its ‘25 by 25’ campaign target – which commits members to use eBLs for at least 25% of shipments of one commodity – has already been reached. 

BHP, Rio Tinto, Vale and Anglo American achieved an average eBL adoption rate of 25.1% for iron ore trade, the group says.